Harwood Capital, known for its activist investing, has taken a 4% stake in UK-based global advertising group M+C Saatchi.
The Telegraph of London described the move as a fresh “break-up threat amid stake-building by a notorious” activist investor.
The newspaper quoted city sources saying the investment firm was agitating for change at M&C Saatchi, with options including a break-up or sale.
Earlier this month M+C Saatchi, with revenue sliding in a tough market, rejected an offer from marketing and advertising technology firm Brave Bison to buy its performance division.
The offer was £50 million for the global advertising group’s digital media planning and buying unit, a key part of the company’s growth plans.
M+C’s media business grew 5.4% in the half year to June on the back of “good progress” in North America.
However, overall the company is in negative territory. M+C Saatchi reported like-for-like net revenue down 5.1% to £103.8 million for the half year to June. Operating profit fell 36% to GBP 10.3 million.
M+C Saatchi singled out Australia as a poor performer. The company, given continuing macro headwinds as well as the "significant drag of the Australian business," expects full year revenue to slide by about mid-single digits and profit to be flat on last year.
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